Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a projection of the total revenue a business can expect from a single customer account over the entire duration of their relationship. In SaaS, understanding CLV helps in assessing the profitability of customer segments and informing marketing and retention strategies.

By increasing CLV through upselling, cross-selling, or improving retention, SaaS companies can boost revenue and justify higher customer acquisition costs. It is a key metric for long-term financial planning.